Utilization Rate

Noun · Startup & VC

Definitions

  1. The percentage of available capacity, billable time, or allocated resources that are actually being used productively. Utilization rate is especially important in services, support, and infrastructure-heavy businesses.

    In plain English: The share of available capacity or time that is actually being used.

    Example: "The consulting arm improved margins once utilization rate stabilized above target."

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